The Purv Flexipack IPO opened on February 27 and is set to close on February 29. The price band for the IPO is between ₹70 to ₹71 per share, with a lot size of 1,600 shares.
Reserved shares have been allocated for Qualified Institutional Buyers (QIBs), Non-Institutional Investors (NIIs), and retail investors. Additionally, a portion of shares has been reserved for the market maker category, totaling up to 3,48,800 equity shares.
The Purv Flexipack IPO opened for subscription on Tuesday, February 27, and is scheduled to close on Thursday, February 29. The price band for the IPO has been set in the range of ₹70 to ₹71 per share, with a face value of ₹10 each.
The lot size for the Purv Flexipack IPO comprises 1,600 shares, and investors can bid for a minimum of 1,600 shares and in multiples thereof.
In the Purv Flexipack IPO, a maximum of 50% of the shares in the public issue has been reserved for Qualified Institutional Buyers (QIBs), while not less than 15% is allocated for Non-Institutional Investors (NIIs). Additionally, a minimum of 35% of the offer is reserved for retail investors. Furthermore, the market maker category has been reserved for up to 3,48,800 equity shares.
Purv Flexipack’s primary business activity revolves around the distribution of various plastic-based products. These products include polyester films, cast polypropylene (CPP) films, biaxially oriented polypropylene (BOPP) films, plastic granules, inks, adhesives, masterbatches, ethyl acetate, and titanium dioxide.
Additionally, Purv Flexipack serves as a Dealer operated polymer warehouse (DOPW) and a Del Credere Associate (DCA) for the polymer sector of Indian Oil Corporation Limited.
The promoters of the company are Rajeev Goenka, Poonam Goenka, and M/s Purv Logistics Private Limited. According to the company’s Red Herring Prospectus (RHP), Sah Polymers Limited is listed as one of its peers, with a Price-to-Earnings (P/E) ratio of 54.95.
During the period from March 31, 2022, to March 31, 2023, Purv Flexipack Limited witnessed a significant growth in its financial performance. The profit after tax (PAT) surged by 31.82%, while the revenue experienced a notable increase of 48.66%.
The subscription status of the Purv Flexipack IPO stood at an impressive 95.89 times on day 2. The issue garnered a positive response, particularly from retail investors, whose portion was subscribed 155.50 times. Non-institutional buyers also showed strong interest, with their portion being subscribed 76.45 times. However, the Qualified Institutions Buyers portion was subscribed 3.85 times. These figures reflect significant investor demand for the IPO, as per data available on chittorgarh.com.
As of 13:36 IST, the company has received bids for 36,42,14,400 shares against the 37,98,400 shares on offer, according to data on chittorgarh.com.
Additionally, the Purv Flexipack IPO subscription status was 59.27 times on day 1, indicating strong investor interest in the offering.
Here are the details of the Purv Flexipack IPO:
- IPO Size: ₹40.21 crore
- Fresh Issue: 56,64,000 equity shares
- Face Value: ₹10 per share
- Offer Type: Completely fresh issue; no offer-for-sale component
Utilization of Net Proceeds: The company plans to utilize the net proceeds from the IPO for the following purposes:
- Meeting working capital requirements
- Financing general corporate purposes
- Fully or partially repaying certain current fund-based borrowings obtained from scheduled commercial banks.
The book running lead manager for the Purv Flexipack IPO is Holani Consultants Private Limited, while the registrar handling the IPO is Link Intime India Private Ltd. Additionally, Holani Consultants is designated as the market maker for the Purv Flexipack IPO.
As per investorgain.com, the Purv Flexipack IPO’s Grey Market Premium (GMP) today stands at +115. This indicates that Purv Flexipack shares are trading at a premium of ₹115 in the grey market.
Considering the upper end of the IPO price band and the current premium in the grey market, the expected listing price for Purv Flexipack IPO is ₹186 per share, which is approximately 161.97% higher than the IPO price of ₹71.
Based on the grey market activities observed over the last 12 sessions, today’s IPO GMP suggests an upward trend, indicating expectations for a strong listing. The lowest GMP recorded is ₹0, while the highest GMP reported is ₹125, according to analysts at investorgain.com.
The term “Grey Market Premium” (GMP) signifies the additional amount that investors are willing to pay above the official issue price for shares of an IPO before they are listed on the stock exchange. It serves as an indication of the market’s sentiment and investors’ readiness to pay a premium for acquiring shares in anticipation of potential listing gains. A positive GMP suggests high demand for the IPO shares, while a negative GMP indicates lower interest or skepticism among investors.
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